Zee alleges Star India for violating terms of ICC TV deal, seeks INR 68.54 crore refund

Zee Entertainment Enterprises (ZEEL) finds itself entangled in a legal tussle with Star India (Disney Star) over the television broadcast rights of ICC cricket matches in India.

The genesis of this legal drama traces back to August 2022 when ZEEL inked a deal with Star India to sub-license the TV broadcasting rights of ICC Men’s and Under-19 international matches for the years 2024-2027, a promising collaboration that now stands at the crossroads of controversy.

ZEEL has alleged that Star India failed to uphold its end of the bargain, citing lapses in securing necessary approvals from the International Cricket Council (ICC), executing essential documentation, and overall non-compliance with the agreed terms.

The stakes are high, with ZEEL seeking a hefty refund of INR 68.54 crore, asserting that the agreement is breached and stands repudiated.

The financial ramifications of the dispute are noteworthy. ZEEL has already incurred INR 72.14 crore for bank guarantee commissions and interest expenses tied to the ill-fated deal.

Star India has claimed unpaid dues of rights fees amounting to INR 1,693.42 crore and an additional INR 17 crore for bank guarantee and deposit interest from ZEEL. However, ZEEL has contended that the breaches and non-compliance by Star India has led to the sub-license agreement become null and void.

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Despite Star's claim, ZEEL stands its ground, vehemently refuting the claims and asserting its "strong and valid grounds to defend any claims." In response, ZEEL has not only terminated the agreement but has also demanded the return of INR 68.54 crore, the sum already disbursed.

The potential fallout from this clash extends beyond the boardroom, as viewers in India face the looming specter of missing out on crucial ICC events, including the upcoming T20 World Cups and Cricket World Cup if the dispute remains unresolved. With both parties gearing up for a legal showdown, the final verdict will determine the destiny of TV broadcast rights for these prestigious cricket tournaments in India.